India’s Finance Ministry Seeks to Increase Gold Import Restrictions

As we reported last week, India’s gold imports for the month of September were FIVE TIMES what they were for 2013, causing a massive spike in the trade deficit for the country.

This dramatic increase in gold demand has led the Finance Ministry to request increased restrictions on imports of the precious metal in order to even out the ratio of imports to exports, Reuters reported today.

India is the world’s leading importer of gold behind China and both countries account for nearly 70% of global demand.

On Thursday, India will celebrate Diwali, the Hindu Festival of Lights, a celebration where gold is typically given as gifts and religious offerings. Each fall, gold demand in India increases in advance of religious festivals and wedding season.